With the surge in the number of IT metrics, it is critical that CIOs identify the ones that provide them the best insights on essential enterprise functions.
Metrics are the essential tools that can help CIOs to focus their teams and resources on important core business areas such as transformation and operations. Even though highly useful, metrics, when misused, can be dangerous. Often, organizations rely on the wrong metrics to track specific processes, leading to inaccurate or misleading results.
Additionally, incorporating new metrics that have yet to demonstrate their long-term value can backfire. Therefore, CIOs should assemble an analysis package that their counterparts can use to learn about IT’s impact on transformations and operations. They should take steps to avoid clutter as well as confusion and focus on a core set of fundamental metrics that provide clear insight into the critical issues and opportunities.
Here are five fundamental metrics that CIOs should incorporate into their analysis toolkit:
Return on Investment
To get an in-depth understanding of the impact of transformation initiatives, CIOs should focus their attention on return on investment (ROI). Aside from providing insight into the value, ROI can highlight the joint ownership between business and IT, which is essential to bring transformation to life.
For measuring the effectiveness of the ROI, IT teams should collaborate with other departments to understand what tasks they should focus on to fulfil their obligations for transformation success. By taking initiatives like these, CIOs can ensure that their transformation initiative will lead to successful and value-creating projects.
Business value delivered
CIOs often assign specific IT projects that are often linked to overall enterprise digital transformation initiatives. To measure the success of them, CIOs can opt for traditional metrics such as project costs, implementation timelines, the functionality delivered and much more. But to truly measure the success of these projects is by knowing the business value it is delivering. When IT transformation is directly linked to business value, it can foster greater collaboration between business and IT leaders. Additionally, it will enable better governance on transformation initiatives, as initiatives that drive higher value for the business get prioritized.
Availability of online applications
An efficient way of assessing IT operational performance is by measuring online application availability. While the availability and efficiency of internal-facing applications affect workforce productivity, the availability and efficiency of external-facing applications impact external stakeholders, particularly satisfaction, customer experience, and retention. Since all the factors will have a major impact on the organization’s bottom line, measuring online application availability can help organizations to detect and solve operational issues as well as identify areas for improvement.
Team engagement of IT and Business
As teams experience psychological development through forming, storming, and performing, it takes time for them to collaborate and communicate with each other. Quite often, clients fail to allocate adequate time for transformative changes to settle into place and business and IT project leaders call it a success and move on to the next transformation stage. Therefore, CIOs should prioritize the measurement of engagement level from all team business and IT team members because if engagement is high, the foundation for success is strong and if engagement is low, the transformation is flawed and may fail.